Need advice

POSTED BY Jeetu Ojha ON September 20, 2012 10:58 am COMMENTS (16)


Hi manish .. after reading most of ur article ( still have to read some ) , i had decided to invest 1000rs in SIP in ELSS and i came to know Canara Robeco Eqt Tax Saver is best and suited for me ( as i done some ground work ) and by
have 2 question.

1) what is difference between growth and divided fund ?

2) Canara Robeco Eqt Tax Saver growth or divided fund –> which is best ( almost answer hidden in 1st question which i asked ) invest plan 15 to 20 yrs time horizon

thnks , happy day take care 


16 replies on this article “Need advice”

  1. Jeetu Ojha says:

    Dear Ashal

    Thanks for the reply

    my income is 3.5 lakhs and take home salary is 23,200/month

    LTA = 23k which i get once a yr ( 23k i pay MBA fees )

    So i divided my income by

    1) expenses = 8000 ( as im leaving alone in mumbai )
    2) LIC = 650+1335 = 2200 ( LIC policy quaterly premium divided by every month )
    3) emergency fund = 1000
    4) Money transfer to father = 10000
    5) EMI laptop = 2000

    Grant total = 23200rs

    only 2 EMi left in so by nov i can invest 2k

    and regarding my LIC plan:

    LIC money back policy = started in 2006

    Policy Term : 20 Years
    Mode of premium payment : Yearly
    Sum Assured : Rs. 1,00,000 /-
    Annual Premium : Rs. 6564 /

    LIC jeevan anand = Sum assured 3 lakhs and i get 6lakhs after 20 yrs and paying premium around 16020 / yr


    Jeetu ojha

    1. Dear Jeetu, thanks for providing the details. Do you feel paying 3L Rs. & then getting back 6L Rs. from this Jeevan anand is good thing to do?

      Also, this money back policy ‘ll not going to benefit in terms of investment & return there on.

      In my personal opinion, stop both these policies immediately. Purchase a Term cover of at least 50L Rs. The prem. for you ‘ll be somewhere around 5-6K Rs. Yly.

      Please create an emergency fund of at least around 6 months’ expenses.

      Then only think of investing in MFs & elsewhere.



      1. Jeetu Ojha says:

        Tnks Ashal .. for prompt reply .. one more question ,, if i surrender those policies wil get any amount of money like i invested almost = 51000rs

        Tnks ans sorry for disturbing u at this time

        Jeetu ojha

        1. Dear Jeetu, you ‘ll get some surrender value only for money back policy but not for Jeevan Anand. How much, only LIC people can tell.



          1. Jeetu Ojha says:

            HI Ashal .. sure i wil ask them regarding money back and wil also ask can i transfer jeevan anand policy to term plan

            thanks ashal .. guiding me in right direction , now i have clear view … 🙂 , get back to u once i make emergency fund 🙂

            God bless you , take care 🙂

            Jertu ojha

          2. Dear Jeetu, I doubt that conversion of Jeevan Anand into a Term plan is possible at this stage, still you may give a try to it with LIC. By the way, in case of Term plan from LIC, the prem. ‘ll be very high for the same 50L Rs. sum assured.



  2. Bireswar Saha says:


    i have a policy from reliance highest NAV guranteed regular plan 1, stared on 22-03-10,sum assure 5 lacs, premium of 1 lacs yearly ,its 10 yr plan. Current Fund Value is 284660.18. and total no of units is 25000.894300. now i would like to know should i continue this plan for full 10 yr or should i surrender my plan , do u think that if i cotinue for 10 yr will i get a good returns . according to you how good is this plan . pls advice me should i switch my funds if yes pls advice me in which places .

    thanking you

    dr.bireswar saha M.D

    from;dharmanagar ,tripura

    M- +919862617084

    1. Dear Bireswar, these Gtd. NAV plans are the worst form of combo product (insurance + investment). In my personal opinion, I w’d like to surrender & then ‘ll invest the money in MFs or FDs or PPF or Bonds. For my insurance needs I w’d like to go for pure insurance i.e. term cover.



  3. Jeetu Ojha says:

    Hello Ashal

    1)LIC money back policy –> father started in 2006 ( in my name & i dont have any idea y he had chhosen this policy ) and now im paying premium

    2) Jeevan anand –> for insurance purpose ( friend suggested ) like death coverage things

    after reading your reply , i can invest 1000rs in PPF ( every month ) or lump sum april 1st to 5th every yr

    and as i read few article in forum that for long term like 15 to 20 yrs time horizon MF growth fund is best.

    Should i start investing minimum amount of 500 in MF growth fund .?

    Jeetu Ojha

    1. Dear Jeetu, when you do not have any idea for that money back policy, why are you paying prem. in it?

      Regarding Jeevan Anand, can you tell me how much insurance is there for you in this policy?

      Can you tell me your yly income?



      1. Jeetu Ojha says:

        Hii ashal when u free reply me


        jeetu ojha

  4. Jeetu Ojha says:

    Hello nice to hear from you

    Thanks for the prompt reply and just now i came to know ( from you ) that in next few years ELSS scrapped as an tax benefit instruments ( may be )

    why i had choosen 1000rs investment because already i have 2 lic plan

    1) LIC money back –> 15 yrs-> started on 2006 –> premium paying 1600/yr
    2) LIC jevan anand –> 20 yrs –> started on feb 2012 –> ptemium paying 16020/yr

    so total investment = 17620/ yr

    i had planned to invest 500 to 1000 in mutual fund ( 20 yrs locking period )
    and 500rs in PPF

    why i had choose ELSS beacause last yr i paid 5000rs income tax, so this time i had planned to invest in ELSS because i get more interest then in PPF .

    Am i thinking in right direction? kindly suggest me

    Jeetu ojha

    1. Dear Jeetu, what benfit you ‘ll get from those 2 LIC policies or should I say your family? Is it Insurance or Investment?

      Please clarify.

      Regarding money to be invested for tax saving purpose, please do note, the maximum limit under section 80C is 1L Rs. that you can save & invest to cut down your tax liability. This was the reason I asked why only 1000 Rs. mly in ELSS.

      In my personal opinion, to make maximum benefit of PPF, please invest full amount in one lump sum between 1st to 5th april every year.



  5. Jeetu Ojha says:

    Thanks ramesh. definitely will read more to get clear idea

  6. Dear Jeetu, Wjhy only 1000 Rs. mly & that too in an ELSS & for 15-20 years? Do you know in next few years ELSS may be scrapped as an tax benefit instruments?

    Please answer.

    As rightly said by dear Ramesh, read more & more & you ‘ll get the answer for your query yourself.



  7. Ramesh says:

    Read more.
    Understand more.

    Go through a lot of threads in this forum, and you will get the answer yourself.

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